Question

the compound interest on a sum of money for 3 years at5% is 3783. what is the simple intrest

Answer 1

Answer:

Let P be the principal.

compound interest for 3 years = P -P (5/100)^3

=P-P(0.05)^3=P(1-0.05^3)=3783

P=3783/(1-0.05^3)

Simple interest=P×0.05×3=0.15×3783/(1-0.05^3)

=567.45/0.999=568